Global sales of electric vehicles (EVs) and plug-in hybrids (PHEVs) climbed 18% year-on-year in January, marking a significant shift as growth in Europe and the United States surpassed China for the first time in nearly a year, according to data from research firm Rho Motion.
Key Drivers Behind the Growth
The European market kicked off the year with robust performance, driven by the implementation of stricter CO2 emission targets in the European Union. Meanwhile, China experienced a 43% month-on-month decline in sales, largely due to the Chinese New Year holidays, explained Charles Lester, Rho Motion’s data manager.
Why This Matters
Governments worldwide are rolling out diverse policies to accelerate EV adoption. However, rising trade tensions and slowing automotive markets are raising concerns over potential plant closures and job losses. In January, China extended its auto trade-in subsidies until 2025 to sustain EV sales and stimulate economic growth. Simultaneously, Europe initiated new consultations with automakers, unions, and interest groups to refine its CO2 emission targets.
Sales Breakdown
Global sales of fully electric vehicles and plug-in hybrids reached 1.3 million units in January, reflecting a 17.7% year-on-year increase. However, this marks the third consecutive month of slowing growth.
- China: Sales grew 11.8% year-on-year to 700,000 units, but dropped 43% compared to December due to the holiday season.
- Europe: Sales surged 21% to 250,000 units. France saw a 52% decline due to a new weight tax on PHEVs, while Germany recorded a 40% increase, partly because of low sales in January 2024 when EV subsidies were abruptly discontinued.
- U.S. and Canada: Sales rose 22.1% to 130,000 units.
- Rest of the World: Sales jumped 50% year-on-year.
Market Reactions
Shares of Chinese automakers Xpeng and Geely fell by over 9% and 11%, respectively, reflecting market volatility amid shifting sales dynamics.
Monthly Decline
Globally, January sales dropped 35% compared to December, primarily due to China’s sharp decline.
Visual Representation
A stacked column chart illustrates the global sales distribution of fully electric and plug-in hybrid passenger cars across China, Europe, the U.S., Canada, and the rest of the world.
Source: Reuters
